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NEGLIGENCE Railroads hit for $24M over electric wire burns PHILADELPHIA (AP)-A Pennsylvania federal jury has awarded $24.2 million to two men who were severely burned by electrical wires when they trespassed onto railroad property and climbed atop a rail car. Jeffrey Klein and Brett Birdwell, who were 17 at the time of the accident, sued Amtrak and Norfolk Southern Corp. after being burned by a 12,500-volt electrical wire in Lancaster, Pa., in August 2002. In their lawsuit, they argued that the companies should have placed warning signs alerting people to the wires, which power locomotives. PRODUCTS LIABILITY GlaxoSmithKline settles Paxil claims for $64M EDWARDSVILLE, ILL. (AP)-GlaxoSmithKline PLC has agreed to pay $63.8 million to settle a lawsuit claiming that the pharmaceutical firm promoted its antidepressant drug Paxil for use by children and adolescents while withholding negative information about the medication’s safety and effectiveness. Members of the class, including all U.S. residents who bought Paxil or Paxil CR, a controlled-release version of the drug, for their children could get full refunds if they have records of their purchases. REGULATORY ACTION Oilseed processor, DOJ settle pollution claims ST. LOUIS (AP)-Oilseed processor Bunge Ltd. and three of its subsidiaries have agreed to pay $13.9 million in a pollution settlement with the federal government, the U.S. Department of Justice said. As part of the deal, Bunge’s St. Louis-based unit, Bunge North America Inc., will clean up emissions at 11 soybean-processing plants in eight states, eventually cutting more than 2,200 tons of harmful pollution emissions a year. According to the government, Bunge or a subsidiary violated the federal Clean Air Act at some or all of the dozen plants with “major” modifications of those sites without getting permits or adhering to pollution controls. Insurer pays $15.5M to settle deception probe ALBANY, N.Y. (AP)-UnumProvident Corp., a disability insurance company, has entered into a $15.5 million settlement with New York Attorney General Eliot Spitzer over alleged deceptive practices and secret payments to brokers. Chattanooga, Tenn.-based Unum agreed to pay restitution to policy holders and a civil penalty of $1.9 million. Spitzer had accused the company of improperly compensating brokers who pitched several insurance companies’ policies to prospective customers. Unum paid brokers based on their ability to get customers to renew policies despite rate increases. SEXUAL ABUSE Carmelite order settles abuse claims for $10M LOS ANGELES (AP)-The Archdiocese of Los Angeles and a Roman Catholic religious order will pay $10 million to several people to settle allegations of clergy sexual abuse, attorneys for those involved in the cases said. The Carmelite order will pay most of the settlement to seven people, including two who said they were sexually molested at a high school. The archdiocese will contribute about 5%. SEXUAL HARASSMENT Man complaining about female boss wins $18M LOS ANGELES (AP)-A California state jury has ordered The Vons Cos. Inc. to pay more than $18 million in damages to a former employee who claimed that the supermarket chain fired him after he filed a report accusing a female supervisor of sexual harassment. The jury awarded more than $16 million in punitive damages to James Stevens, after ordering Vons to pay the one-time inventory clerk $1.7 million for economic loss and emotional distress, said attorney Gloria Allred of Los Angeles-based Allred, Maroko & Goldberg, who represented Stevens. Stevens, a 25-year veteran of Vons, was fired in May 2004. Stevens testified that the supervisor subjected him to various forms of verbal and visual harassment. In addition to making sexual remarks, the supervisor at one point simulated sex with a feather duster. SHAREHOLDER SUIT Doughnut chain settles class action for $75M WINSTON-SALEM, N.C. (AP)-Doughnut chain Krispy Kreme Doughnuts Inc. said that it has reached a $75 million settlement agreement with the lead plaintiffs in a securities class action. The class, made up of shareholders who bought stock between March 8, 2001, and April 18, 2005, have agreed to dismiss their claims with prejudice. Claims against Scott Livengood, the company’s former chairman and chief executive, are not subject to dismissal. WHISTLEBLOWER LAW Failure to cover pregnant women will cost $48M CHICAGO (AP)-An Illinois federal jury held that insurance company Amerigroup Corp. and its Illinois affiliate had discriminated against pregnant women. The jury said that the company, a provider of health care for low-income patients, must pay $48 million in damages. Under both the federal False Claims Act and the Illinois Whistleblower Act, the amount could triple, rising to $144 million. Federal and state prosecutors as well as a whistleblower said that while marketing its services in Illinois, Amerigroup avoided pregnant women and others likely to run up high medical bills. That cheated the government, which was subsidizing the company to market its services evenly among all low-income patients regardless of whether they were pregnant or had costly illnesses.

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